Waste Management Reports 14.9% Revenue Growth but Decline in Net Income for Q3 2025

Waste Management, Inc. reported significant financial results for the third quarter of 2025, with operating revenues reaching $6.443 billion, a 14.9% increase from $5.609 billion in the same period last year. This growth was primarily driven by the acquisition of Stericycle, higher yields in the Collection and Disposal segments, and increased volumes in landfill, renewable energy, and industrial collection services. However, net income attributable to Waste Management decreased to $603 million, or $1.49 per diluted share, compared to $760 million, or $1.88 per diluted share, in the prior year, reflecting increased operational costs and interest expenses associated with the Stericycle acquisition.

Operating expenses for the quarter totaled $3.833 billion, accounting for 59.5% of revenues, down from 60.6% in the previous year. The decrease in the operating expenses as a percentage of revenue was attributed to efficiency gains and improved turnover, despite an overall increase in costs. Selling, general, and administrative expenses rose to $665 million, or 10.3% of revenues, up from $525 million, or 9.4% of revenues, largely due to costs related to the integration of Stericycle.

In terms of operational metrics, Waste Management's customer base and service volumes showed mixed results. The company reported a decline in residential collection volumes, which was offset by growth in landfill and industrial collection volumes. The integration of Stericycle into the new WM Healthcare Solutions segment is ongoing, with the company focusing on optimizing operations and capturing synergies from the acquisition. The company also experienced a $152 million impairment charge related to the suspension of operations in its Recycling Processing and Sales segment due to deteriorating market conditions for recycled materials.

Looking ahead, Waste Management remains committed to its strategic initiatives, including investments in technology and automation to enhance operational efficiency and customer service. The company anticipates that these efforts, along with the integration of Stericycle, will position it for continued growth. However, it also acknowledges potential challenges from fluctuating commodity prices, inflationary pressures, and evolving regulatory environments. The company expects to resume share repurchases once its leverage returns to targeted levels, projected for the second quarter of 2026.